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bne May 2019 Companies & Markets I 21
“VEB has been tasked to institutionalise what has until now been an informal system of control”
However, Putin has taken personal control of the very large budget funded projects like the construction of gas pipelines, which he personally controls by giving the contracts to his immediate circle of friends, the so-called stoligarchs. In this way he can control the amount of corruption and personally direct the strategically important projects.
But this model will change. Earlier this year Putin launched a massive investment programme with his May Decrees and the RUB25.7 trillion ($390bn) investments planned for
the 12 national projects that will create more work than
the president can oversee personally. VEB has been tasked to institutionalise what has until now been an informal system of control. In this sense it should be no surprise that Rotenberg, one of the key stoligarchs, is being asked to give up control of his major construction asset that will formally taken over by VEB.
Mostotrest is a key asset and is best known for the $4bn construction of the Kerch Straights bridge. All the companies mentioned in the possible VEB deal have worked hand in glove with the major state-owned behemoths to build essential infrastructure.
VEB has a key role in national projects and will spend a total of RUB25 trillion rubles, according to Putin, half of which will come from the budget.
XVI CIS, Baltic States and Caucasus
Bond Congress
Batumi June 13—14, 2019
Hosted by:
Lead partners:
O cial partners:
Sponsors:
Sponsor of gala dinner:
GROUP OF COMPANIES
With contribution from:
www.bne.eu